Commentary

BB/13A/05 VAT—belated notification of an option to tax land and buildings—clarification of HM Revenue & Customs' policy

Part V16 Forms and other HMRC material

BB/13A/05 VAT—belated notification of an option to tax land and buildings—clarification of HM Revenue & Customs' policy

BB/13A/05 VAT—belated notification of an option to tax land and buildings—clarification of HM Revenue & Customs' policy

Business Brief, Issue 13. 5 July 2005

This Business Brief clarifies HM Revenue & Customs' (HMRC) policy in relation to the exercise of their discretion to accept a belated notification of an option to tax land and buildings. In particular, it explains the distinction between a belated notification and a retrospective or backdated option. This clarification is given following a rise in the number of attempts to notify options to tax that are retrospective or backdated.

Who is affected?

All those who seek acknowledgement of a decision to opt to tax (sometimes known as an election to waive exemption) outside the 30-day time limit.

Background

There are two distinct stages in the process of opting to tax. The first is making the decision to opt, the “election”. The second is notifying HMRC of that decision, in writing, within 30 days of the date that the decision was

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